Unit 4 Individual Project-Instructors Feedback
Hello Glenda, || Thank you for your work effort with your Individual Project, P4IP. | Task Type: Excel Spreadsheet. Points Possible: 100 |
| Task requirements: 25/25
| Demonstration and application of knowledge: 55/75
| Strengths and Opportunities for Improvement:
| The cash flow comes to $9,875,000.00 for years 1-4 and $14,875,000.00 for year 5 with NWC recovery (depreciation). This has thrown off your NPV and IRR solutions.
The following is a summary of cash flows. The Operating Income is a sum of the first four items. Net income is the Operating Income minus taxes. The total cash flow for the first year is net income plus depreciation.
Revenue $25,000,000.00
COS $(10,000,000.00)
Depreciation $(5,000,000.00)
SG&A $(2,500,000.00)
Operating Inc $7,500,000.00
Taxes $(2,625,000.00)
Net Income $4,875,000.00
Add: Depreciation $5,000,000.00
Add: Recovery NWC IN LAST YEAR ONLY
Total Cash Flow $9,875,000.00 (YEAR 1-4)
NWC recovery $5,000,000 added to $9,875,000.00 = $14,875,000.00 cash flow in year 5
| Cash Flows (pro forma income statement) calculated: 26/30
| NPV (10,538,625.96): 28/35
| IRR (22.19%): 26/35